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Morgan Stanley Says Amazon Shares Will Surge Further Thanks to Prime

The bulls have been unleashed.
Operations Inside the Amazon.com Fulfillment Center On Cyber Monday
Photographer: David Paul Morris/Bloomberg

Analysts on Wall Street have consistently kept a close eye on Amazon.com Inc.'s Prime Membership offering, and while some estimates indicate more than 35 percent of households in the U.S. use the service there appears to be much more room to run. 

"Our AlphaWise data show that Amazon's Prime subscribers continue ramping," a team at Morgan Stanley led by Brian Womak wrote in a recent note, in which the analysts boost their 12-month price target for the shares to $950 from $800. That suggests they could rise over $100 from where they currently trade, at just over $837  by 8:54 a.m. ET.

The analysts go on to estimate that the number of subscribers to the service grew 28 percent between October 2015 through May of this year. "In all, we estimate that there are 60 million global Prime subs," they add, with 41 million of them in the U.S.